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Organization Development and Change

Organization Development and Change. Chapter Twenty: Transformational Change. Thomas G. Cummings Christopher G. Worley. Learning Objectives for Chapter Twenty.

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Organization Development and Change

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  1. Organization Development and Change Chapter Twenty: Transformational Change Thomas G. Cummings Christopher G. Worley

  2. Learning Objectivesfor Chapter Twenty • To explore a framework that categorizes different types of organizational change efforts with emphasis on the features of transformational change • To understand three kinds of interventions against the background of transformational change, integrated strategic change, organization design, and culture change. Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  3. Characteristics of Transformational Change • Triggered by Environmental and Internal Disruptions • Aimed at Competitive Advantage • Systemic and Revolutionary Change • Demands a New Organizing Paradigm • Driven by Senior Executives and Line Management • Involves Significant Learning Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  4. Integrated Strategic Change(ISC) Integrated Strategic Change ……… is a deliberate coordinated process that leads to gradually or radically systemic realignments between the environment and a firm’s strategic orientation resulting in improvement in performance and effectiveness. Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  5. Integrated Strategic Change(ISC) ~ Key Features • Strategic Orientation • Creating the Strategic Plan • Integrating Individuals and Groups into the Process Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  6. The Integrated Strategic Change Process Strategy S1 Strategy S2 Strategic Change Plan Organization O1 Organization O2 Implementation Strategic Analysis Strategic Choice Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  7. ISC Application Stages • Strategic Analysis • Assess the readiness for change and top management’s ability to carry out change • Diagnose the Current Strategic Orientation • Strategic Choice • Top management determines the content of the strategic change • Designing the Strategic Change Plan • Development of a comprehensive agenda to achieve the change • Implementing the Strategic Change Plan Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  8. Organizational Design Conceptual Framework • Strategy • Structure • Work Design • Human Resources Practices • Management and Information Systems Key Point • Fit, Congruence, Alignment among Organizational Elements Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  9. Organization Design Model Organization Strategy Strategic Fit Organization Design Structure Management and Information Systems Design Fit Work Design Human Resource Practices Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  10. Organization Designs Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  11. Organization Design Application Stages • Clarifying the Design Focus • Create the overall framework, begins with examining strategy and objectives and determining organization capabilities needed • Designing the Organization • Results in an overall design for the organization, detailed designs for the components, and preliminary plans for how to implement • Implementing the Design • Puts the new structures, practices and systems into place, draws heavily leading and managing change methods Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  12. The Concept of Organization Culture Artifacts Norms Values Basic Assumptions Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  13. Diagnosing Organization Culture • Behavioral Approach • Pattern of behaviors (artifacts) most related to performance • Competing Values Approach • Pattern of values emphasis characterizing the organization • Deep Assumptions Approach • Pattern of unexamined assumptions that solve internal integration and external adaptation problems well enough to be taught to others Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  14. Competing Values Approach Flexibility & Discretion Clan Adhocracy External Focus & Differentiation Internal Focus & Integration Market Hierarchy Stability & Control Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

  15. Culture Change Application Stages • Establish a clear strategic vision • Get top-management commitment • Model culture change at the highest level • Modify the organization to support change • Select and socialize newcomers; downsize deviants • Develop ethical and legal sensitivity Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning

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